Free iPod nano Checking Account Deal

Chase Bank is offering a free iPod nano for opening a checking account. There are several required steps, and you have to be careful to avoid fees that can ruin this deal. A summary of the steps are as follows:

• Open a Chase Premier/Select Checking account at a nearby branch with a minimum opening deposit of $1K of new money ($500 for Select Checking)
• Activate direct deposit
• Make at least 3 online bill payments to new and unique payees
• Keep the checking account active for at least 6 months

The type of checking account varies based on where you live. In Texas, it's called Premier Checking. In New York it's called Select Checking. The Premier Checking requires $15K of deposit balances to avoid a $15/month fee. The Select Checking requires $25K of deposit balances to avoid a $30/month fee. Deposit balances may include not only the checking account but also savings, money market accounts, and CDs.

According to this fatwallet thread, you may be able to avoid the monthly fees without the required balance for the first 3 months. If this is not the case, you'll have to compare the cost of 6 months of fees or the cost of keeping $15K at Chase for 6 months.

The current rate of a 6-month Chase CD is only around 3% (depending on where you live). This is about 1.5% less than what you could get on top 6-month CDs. For $15K, you would lose about $112 in interest by keeping your $15K in Chase rather than a bank paying top rates.

Instead of the iPod nano, you can get the cheaper iPod shuffle if you open a Free Checking account with Direct Deposit. This Free Checking account has no monthly fees as long as you have direct deposit active. This deal only requies a $500 opening deposit rather than $1000. According to this fatwallet thread, deposits from your ING Direct account may count as direct deposit at Chase.

I posted on other iPod bank deals in this previous post. The NetBank iPod shuffle offer is valid through the end of this month.